Financial Aid

You've heard the rumor that there's money available for kids for college. Yet, you are pretty sure you're not going to qualify for any of it or you're not sure how to get it. 

Well, the rumor is true. There is money available. Some of it's easy to get. Some of it's harder. However, ForWord Consulting can teach you some of the tricks and tips to give you a little edge and find a little cash. 

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Financial Aid Terms

Let's run through a scenario:

You have a child who wants to attend Colgate University. 

Step 1: You determine Colgate's COA by going to its website. 

Colgate's COA: $64,730

Step 2: You complete the FAFSA and/or the CSS Profile to determine your family's EFC.

Your EFC: $45,890

Step 3: You subtract your EFC from the COA to determine your GAP.

   $64,730 (Your COA)
  -$45,890 (Your EFC)
= $18,840 (Your Gap, or the difference)

How to make up this difference? Read on!

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Understanding the Different Types of Financial Aid
or How to Make up the GAP

So, you have a need for funding to cover the GAP or to ease the financial burden you might carry for your child. Here are some of the different types and the processes to get your share. 

Need-based Federal Financial Aid

Students who are financially needy have some options available to them to help finance college. The first and most important piece of advice is this:

Fill out the FAFSA and CSS Profile by the Priority Deadline.

If you're needy, the government will offer you some financial aid in various forms. 

• Grants: Money you do not need to repay.
• Subsidized Loans: Money you do need to reply with reduced or little interest.
• Unsubsidized Loans: Money you do need to repay with interest. 

Every student is eligible for Unsubsidized Loans. 

Need-based Institutional Aid

Universities recognize that their schools cost money. As such, they set aside funding to encourage those with financial need to apply and attend.  

Some universities, particularly the most expensive and elite, are 100% need-met schools. This means that they will cover the Gap, no matter how large it is.  That's right. If your Gap is $18,840 for Colgate, Colgate, which is a 100% need-met school, will erase that amount from your tuition.

You are not eligible for any need-based institutional aid unless you complete the FAFSA and CSS Profile by the Priority Deadline. 

Merit-based Institutional Financial Aid

Let's say you're an exceptional student and a university wants you to attend. To lure you there, it might offer you a tuition reduction in the form of a full- or partial scholarship. 

Sometimes you have to fill out a separate application. Sometimes you're automatically considered for the scholarship just by applying. 

However, there's a catch. To take advantage of this money, you must submit your application to the university by the Early Action or Early Decision deadline. Miss that deadline and you miss out. 

Either way, it's worth noting which universities tend to give money and their qualifications. 

Merit-based Private Financial Aid

Private scholarships can easily help alleviate the stress of the gap. ForWord Consulting has a ton of experience is applying for and winning scholarships for its clients. 

In fact, one ForWord student has earned $52K in outside, private scholarships. 

Private Loans

In the end, the only additional ways of securing extra funding is through private loans. However, keep in mind that students cannot easily secure loans on their own. Parents will need to co-sign on them. 

Private loans have a higher interest rate than federal unsubsidized loans.

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Additional Resources

Financial Aid Fundamentals

​Merit Aid: Claims to be the easiest site for helping students find scholarships and will even bring the scholarships to your inbox.

Forbes: An easy to understand guide to financial aid.

Department of Education: This flyer discusses federal financial aid resources in one quick page.

EFC Data: This document explains how your EFC is calculated.

CSS vs. FAFSA: To understand the differences between the two. 

Financial Aid Terms

First, you have to know what all the different terms mean when you're talking about Financial Aid.  

• Cost of Attendance (COA): Each college has a certain cost to attend. These costs include tuition, room + board, transportation, books.  Public colleges in Virginia average around $25K/year. Private colleges average closer to $50K. 
• Expected Family Contribution (EFC): The government uses a formula to determine how much it thinks you can contribute toward your child's education. 
• The Gap or Your Demonstrated Need: If you take the COA and subtract the EFC, you get your Gap of how much extra your family will have to come up.
• FAFSA: The Federal form used to determine your EFC.
• CSS Profile: A supplemental form to the FAFSA that some colleges, mostly private, use to determine your EFC.

To understand the differences between the CSS 

Financial Aid Process

The financial aid process can be difficult to understand. Here's a handy guide to help you understand the path. 

Appealing Your
​Financial Aid

Sometimes you might want to appeal (not negotiate: schools dislike this term) your chosen university to offer you a stronger financial aid package. Here's some guidance on when to do it, what circumstances colleges will and won't consider, and how to get success. 

The College Solution: The Inside Guide to College Appeals
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Ehow Video: Good Reasons to Appeal for Financial Aid : College Admissions & Requirements

Sample Financial Aid Appeal Letter: From Great Sample Resume

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